FCA Shareholders Approve Ferrari NV Spinoff Deal

Ferrari spinoff will help FCA lessen its debt.

Fiat Chrysler Automobiles NV approved the spinoff of Ferrari NV as a way to help reduce its $10.9 billion debt. With a vote of 98 percent in favor of the split, FCA is set to distribute its 80-percent stake in the supercar company to its investors starting next year.

By separating from FCA, Ferrari will be able to "realize its full potential," said Sergio Marchionne during the shareholders' meeting in Amsterdam last week. "It will also allow Fiat investors to benefit directly from the substantial value inherent in Ferrari." Piero Ferrari, the son of founder Enzo Ferrari, holds 10 percent of the shares, while the remaining 10-percent stake was sold in October in a New York initial public offering.

The IPO raised $1 billion, while the split is expected to raise nearly $4.1 billion for FCA and cut its debt by nearly $1.7 billion. Despite the raised capital, the company is losing one of its most lucrative divisions. Piero Ferrari, along with the Agnelli family holding company Exor SpA, will sign a shareholder pact, which will give both Ferrari and Exor nearly 50 percent of the voting rights.

Ferrari is listed on the New York Stock Exchange under "RACE," and is valued at $47.21 a share at press time, which is 9.2 percent lower than the original IPO offering.